Leveraging Technology to Transform a Purchasing Organization

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Procurement is increasingly looked upon to not just drive further cost reductions, but also help mitigate risk, meet sustainability targets and support a range of other objectives. World class organizations are transforming themselves to rise to the challenge and continue delivering greater results. Automation is a key enabler for such transformations, streamlining processes and freeing employees from tactical work. Join this session to hear how Fujitsu, the leading Japanese information and communication technology (ICT) company, leveraged an integrated suite to empower its staff and transform the function into a strategic value driver.

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  • Ariba’s On Demand applications and the Network generate measurable value to organizationsBuyer’s experience significant savings that fall right to the bottom lineSome savings are obvious (see above) but others less so. For example, a large Oil company was able to significantly cut inventory of replacement parts in its refineries due to the visibility into order status the network provided. This visibility not only enabled the managers to focus on the operations instead of whether a critical shipment was going to come, but also enabled them to reduce the excess inventory they needed as safety stock to ensure the refinery didn’t go downSuppliers experience savings through the automation of non-value added activities (like AR clerks having to call their customers each month to see when payments will be made)Suppliers also see top line growth from participation on the network – including net new business and increased wallet share with existing customers
  • Leveraging Technology to Transform a Purchasing Organization

    1. 1. Leveraging Technology to Transforma Purchasing OrganizationAndrew CrostonChief Procurement OfficerFujitsu© 2013 Ariba, Inc. All rights reserved.
    2. 2. Delivering Measurable BenefitsValue to Companies of All Sizes, Industries, RegionsSupplier ValueBuyer ValueSourcingProcurementProcessAP ProcessComplianceWCM &Discount3-9%ProcessSavings$3-20Savings/Document1-8%SpendSavingsTotalSavingsFasterPaymentAR ProcessProcessingOrdersSales &MarketingIncreasedRevenue15-75%TimeSavings15-75%ProcessSavings5-32%RevenueIncreaseTotalSavingsSource: Ariba customer surveys and interviews2 © 2013 Ariba, Inc. All rights reserved.
    3. 3. Ariba Collaborative Value Chain – Direct, Indirect,Services3•Spend DataEnrichment•SpendAnalysis•ContractCollaboration•Authoring•Repository•RequisitionOwnership•CatalogCompliance•ContractCompliance•ApprovalWorkflow•POCollaboration•POTransmission•Goods &ServicesReceipt•InvoiceReceipt•InvoiceCompliance•InvoiceApproval•ExceptionWorkflow• AwarenessMarketing•LeadCollaboration•ProposalCollaboration•BiddingOpportunity•ContractCollaboration• ContractRepository•CatalogCollaboration•CatalogSyndication•RequisitionCollaboration•SpecificationNegotiation•OrderCollaboration•OrderStatus•InvoiceDelivery•InvoiceCollaboration•Supplier Info;Performance Mgmt;Supplier Research•Company Profile Mgmt•Customer Account ManagementBuyer’s Processes: Analyze to PaySupplier’s Processes: Market to Cash•PaymentCollaboration•DiscountCollaboration•PaymentCollaboration•PaymentVisibility•WorkingCapitalCollaboration•Category /ProjectMgmt•RFI / RFP /AuctionCollaboration•SavingsTracking &Pipeline© 2013 Ariba, Inc. All rights reserved.
    4. 4. Speaker Bio - Andrew Croston© 2013 Ariba, Inc. All rights reserved.4• Andrew Croston is the Chief Procurement Officer at Fujitsu Services. Andrewis currently moving the procurement organisation towards a new operatingmodel to drive consistency and efficiency across the UK and Internationalteam. The initiative includes centralising 3rd party contracts, standardisingstrategic sourcing methodologies as well as a wider Procure to Pay project.Andrew’s background is in large public and private sector procurementprogrammes for Her Majesties Revenue and Customs, the Ministry of Defenceand Corus Steel. He also set out ‘how to procure the London 2012 OlympicGames’ working for the Olympic Delivery Authority (ODA). Andrew is a Fellowof the Chartered Institute of Purchasing (CIPS) and Supply and also amember of the CIPS Management Council.
    5. 5. 5In this Session
    6. 6. Fujitsu in Context6 © 2013 Ariba, Inc. All rights reserved.
    7. 7. 7Long and Winding Road
    8. 8. Global Footprint
    9. 9. Global Footprint
    10. 10. Why Ariba?
    11. 11. Transformation Enabler
    12. 12. Managing ComplexityProcurementas a ServiceProcurementBidManagementStrategic + Complex
    13. 13. Challenges
    14. 14. In Summary
    15. 15. 15
    16. 16. Please Complete Session Survey© 2013 Ariba, Inc. All rights reserved.16Find Sessionin ScheduleClickChoose oneRateSessionThank you for joining usClick Survey andSelect BreakoutSession Survey

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